Co-Signer

A co-signer
is an individual other than the borrower who signs a promissory note and
thereby assumes equal liability for it.

One of the
easiest ways to establish your credit is to have a co-signer who already
has a good credit history assist you in obtaining
a credit card. If you are fortunate enough to have such a person in
your life you are well on your way to establishing credit. Be aware that
any default of credit on your part affects the credit of the co-signer.

Once you
receive your credit card, with the assistance of a co-signer, you can
use it to make charges and of course to make payments on or before the
due date. In time you will have established a credit history. If possible
you should payoff the debt in full when the first bill arrives, but not
before. Please note, completion of the full billing cycle is important
for a "pays on time" report to be made to the credit bureaus.
Continue to purchase with your credit card and make payments on time until
you no longer need a co-signer at which point your credit history will
be established. At this point you should obtain
a credit card using only your credit and cancel the credit card with
the co-signer.

We chose
to use obtaining a credit card with a co-signer to illustrate how to establish
your credit, however if you were to use a co-signer to
obtain
a loan, the process would work in essentially the
same manner.